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Why Canada Needs Europe: Summary

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The article “Why Canada Needs Europe” discusses the Comprehensive Economic and Trade Agreement (CETA), [was signed by Prime Minister Stephen Harper and European Commission President Jose Manuel Barrosa on 18 October 2013] which establishes a commercial trade agreement between Canada and the European Union (EU). It describes how CETA could improve trade and economic conditions in Canada by reducing tariffs that limit profitability and international competitiveness, as well as updating regulations that impact areas such as intellectual property, labor mobility, and technical standards. Like NAFTA, CETA is in part intended to improve trade flow by reducing traditional barriers like tariffs. Hence, the article discusses about the trade regulations that Canada and European union had after signing the agreement.

The benefit of the agreement and why Canada needs Europe is because like NAFTA, it helped both the countries in reducing the tariffs. The deal is expected to remove 98 percent of tariffs on imported and exported goods. It is also expected that there will be elimination of EU tariffs on agricultural goods, seafood and many other goods. It's been also reported that European
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The United States would face the negative consequence, as the US would suffer economic losses from a CETA due to trade diversion. Besides, the criticisms have been developed from some Canadian dairy farmers, as the agreement will weaken dairy supply management and increase corporate control over seed and environmental regulations. Similarly, another impact is it will affect the Canada’s local farmer. Since the European agricultural product like beef and pork are available in cheaper price, Canadian farmers will be forced to compete with generous European agricultural subsidies. Canadian farmers will gain little and loss
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